An amnesty for people claiming more social benefits than they are entitled to was announced as part of a crackdown on abuse.
In addition, the government wants to ensure that the social security system incentivises work and discourages dependency while introducing measures to strengthen social cohesion and reduce poverty.
The measures target people living off social benefits, including single parents, long-term unemployed and youths lacking basic skills.
People who have been claiming more than their fair share of benefits will be given until the end of February to come forward and regularise their situation.
A one-time minimum penalty will apply in such cases but systematic fraud will be excluded. Harsher penalties will apply for those failing to come forward by the deadline.
Unemployed single parents under 23 who receive social assistance will be obliged to take part in the youth guarantee scheme as soon as their child turns one.
Failure to do so will result in the loss of assistance.
In the case of single parents who find a job, social benefits will be phased out gradually over a three-year period, through annual reductions of 65, 45 and 25 per cent. This measure will be applied to parents whose children have reached the age of 23.
A similar arrangement will also apply for youths aged between 18 and 23 who are on the unemployment register. They will have to participate in the youth guarantee scheme or lose their unemployment benefits.
Those who are on social assistance will be given a four-month period to decide whether they want to join but upon refusal will lose the benefits until age 23.
In an effort to persuade unemployed youths to seek work, there will be 700 traineeships and 700 work trials up for grabs through the European Social Fund.
A sum of €2.5 million from the fund has been allocated to encourage employers to engage workers from socially disadvantaged backgrounds and to train their staff.
In a bid to combat precarious employment, participants in the community work scheme who at present earn less than the minimum wage for jobs with local councils and schools will be offered the opportunity to take part in a social enterprise with autonomous management. Participants will be guaranteed the minimum wage.
Measures were also announced to combat tax evasion. Any private enterprise, regardless of size, will be obliged to register with the VAT Department, even those who at present are exempt because they fall below the €7,000 threshold. Exemptions from issuing VAT receipts will be accompanied by audits to guard against abuses.
A pilot project to analyse existing data within the public sector in a bid to fine-tune investigations related to tax fraud will also be launched.